Hotels Fail For Many Reasons

Independent & Franchise

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Hotels do not fail on their own. The owner of a property is not only responsible for failures but also the franchise itself and you the owner of an independent hotel. If you own a franchised hotel, have you noticed that your area of protection does not always protect you?

 

This is evident when your franchisor places one of their “sister brands” or "soft brands" in close proximity to your property cutting into your market share. Or an independent hotel converting to a franchise brand right down the street from you ........It's All About The Money.......It's All About Capturing Your Fair Share of The Money   

 

Below Are a Few Reasons Hotels Fail:

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•       Underestimating the difficulty of establishing a new hotel business

•       Owners who do not read the fine print relating to ALL the fees they have to pay each month

•       Paying high fees for services & products that are not needed and the ROI is not worth it.

•       Being forced by your franchisor to use preferred vendor products and services that cost less elsewhere

•       Ownership has No practical hotel experience

•       The hotel doesn't have “that thing" that makes it special - No uniqueness

•       Limited knowledge of sales & marketing

•       Unprepared for off-season

•       They underestimate their competition

•       Community disconnect - No manager presence

•       Lack of accountability and urgency

•       Using outdated technology - with little or no support - and your fees are always going up

•       Absentee owners, with passive onsite managers & staff

•       Unmotivated employees, asleep at the wheel

•       Ownership negating all the profits and not reinvesting in renovations when needed

•       Pushed out of  the market of best to second-best by a new or renovated hotel

•       Menus that are not comparable to others nearby

•       Employee theft - of cash or inventory

•       Dye the carpet and raise the rates mentality

•       Consistently comping rooms rather than addressing service issues

•       Owner and franchise have different goals

•       Ownership stuck in a 10--20 year franchise agreement - with a 5 year exit plan

•       Dated rooms and common areas

•       Safety and health issues ignored    

•       Free Continental Breakfast - fit for a wedding reception

•       PIPs based on sheep mentality of "monkey see - monkey must copy" "Well the hotel down the street does it" 

•      Thinking Artificial Intelligence (AI) is going to be the "Gold Standard" for all things hotel related

•      Your Team Managers dictating why they are the best and other department managers are to blame